18988. Chandler Brothers & Co. (Philadelphia, PA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
July 25, 1921
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini
Short Digest
09ced638

Response Measures

None

Description

No run or depositor panic is described. The firm closed its doors and receivers were appointed (Common Pleas Court) on July 25, 1921; subsequently an involuntary bankruptcy and referee were appointed. Cause framed as firm-specific adverse losses and poor market/shrinkage in securities (including heavy declines in Mexican Petroleum and Pan-American Petroleum issues).

Events (4)
1. July 25, 1921 Receivership
Newspaper Excerpt
Edwin J. Gilfillan ... and Cornelius Haggerty, Jr., were named as receivers and gave bond of $100,000. The company closed its doors today after Judge Patterson had appointed receivers on the request of Fred T. Chandler, Jr..
Source
newspapers
2. July 25, 1921 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Poor business and poor market conditions; tremendous shrinkage in value of securities and heavy declines in Mexican Petroleum and Pan-American Petroleum issues; insolvency and inability to continue without loss.
Newspaper Excerpt
The company closed its doors earlier in the day after Judge Patterson ... had appointed receivers for the firm upon the request of Fred T. Chandler, Jr.
Source
newspapers
3. July 26, 1921 Other
Newspaper Excerpt
Three creditors ... formally applied to the United States District Court to-day to have the firm adjudged involuntary bankrupts. The creditors contended the appointment of a receiver by Common Pleas Court here would not affect the company's business affairs in cities outside of Pennsylvania.
Source
newspapers
4. August 17, 1921 Other
Newspaper Excerpt
Chandler Brothers & Co., bankers and brokers, were declared bankrupt yesterday by the United States District Court. John M. Hill was appointed referee for administration.
Source
newspapers

Newspaper Articles (7)
1. July 26, 1921 The New York Herald New York, NY
Article from The New York Herald, July 26, 1921

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Article Text

RECEIVERS NAMED FOR CHANDLER BROS. Shrinkage of Securities and Poor Market Conditions Cause Brokers' Failure. PHILADELPHIA, July 25.-Poor business, -poor market conditions, and a tremendous shrinkage in all securities recently, caused the failure of Chandler Brothers & Co., widely known bankers and brokers of this city and New York, Earl Mendenhall, head of the firm, said in a statement late to-day. The company closed its doors earlier in the day after Judge Patterson, sitting in Common Pleas Court, had appointed receivers for the firm upon the request of Fred T. Chandler, Jr. Mr. Chandler set forth in a bill of equity that, owing to existing economic conditions, it was found impossible to conduct the business without a loss. In an answer, the other partners admitted the truth of this statement and joined in the application. Edwin J. Gilfillan, an engineer, and Cornellus Haggerty, Jr., an attorney, were named as receivers and gave bond of $100,000. Mr. Mendenhall later issued the following statement, explaining the firm's action: "The cause is poor business and poor market. Recently there has been a tremendous shrinkage in the value of all securities. The condition we found ourselves confronted with was not because of any one particular stock or security difficulty, but a general condition of business which confronts the world, and which is particularly emphasized in our business. "We hope to reorganize and start up in business again. We can do that better by having had the receiver appointed. Steps, of course, were taken by our firm to avoid the receivership, but under present business conditions that was impossible." Mr. Mendenhall said his firm had more than 1,000 accounts. but explained that losses by its clients would depend upon the condition of the stock market which the receivers begin to liquidate whatever securities and stocks are held. He could not estimate the firm's losses. It was estimated in Mr. Chandler's bill of equity that the company's assets amounted to about $50,000. Liabilities were not mentioned and the receivers declared they could not issue a statement as to the firm's condition until they had made an examination. No such announcement was expected for several days at least. Chandler Brothers & Co. were members of the Philadelphia Stock Exchange, New York Stock Exchange, New York Sugar Exchange, New York Coffee Exchange, New York Cotton Exchange, Chicago Stock Exchange and the Chicago Board of Trade. It was announced there was no connection of any character between the closed concern and Chandler & Co., Inc. A small crowd gathered in front of the company's offices soon after notices of discontinuance had been posted. Guards at the doors refused to answer any questions, however, and the crowd soon disappeared.

2. July 26, 1921 New-York Tribune New York, NY
Article from New-York Tribune, July 26, 1921

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Article Text

Chandler Bros. & Co., Brokers, To Be Dissolved Receivers Named for Firm Hit by Deals in Mexico and Pan-American Petroleum Special Dispatch to The Tribune PHILADELPHIA, July 25.-Receivers to effect the dissolution of the firm of Chandler Brothers & Go., bankers and brokers, were appointed to-day by Judge John M. Patterson, of Common Pleas Court No. 1. at the request of Fred T. Chandler jr. The company closed the doors of its main offices in Philadelphia and New York and of all its branch offices. The insolvency of the company automatically suspends it from membership in the Chicago Stock Exchange, the Chicago Board of Trade. the New York Cotton Exchange and the New York Coffee and Sugar Exchange, as well as from the New York and Philadelphia Stock Exchanges. The suspension continues for one year. Poor business, poor market conditions and a tremendous shrinkage in all securities recently caused the failure. Earl Mendenhall, head of the firm, said. He added that the firm hopes to reorganize and start up again. Mr. Chandler estimated that the company's assets were $50,000. Liabilities were not mentioned, It was announced there was no connection of any character between the closed concern and Chandler & Co. Inc. The application for the appointment of receivers was made and asked for a bill in equity against the other three members of the firm, Mr. Mendenhall, Lewis E. Waring and Edward S. Little. At the same time the three partners filed an answer admitting the truth of Mr. Chandler's averment and joining in the application for the appointment of receivers. Edwin J. Gilfillan, an engineer, and Cornelius Haggerty jr., a lawyer, were named as recaivers by Judge Patterson. They entered a $100,000 bond. The firm's troubles have been associated with recent heavy declines in the value of Mexican Petroieum and Pan-American Petroleum and Transport issues. It has been reported that customers who bought these stocks were unable to put up additional margin when called upon by the firm to do so.

3. July 26, 1921 Albuquerque Morning Journal Albuquerque, NM
Article from Albuquerque Morning Journal, July 26, 1921

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Article Text

POOR BUSINESS CAUSES FAILURE BROKERS Impossible, Owing to Present Economic Conditions, To Continue Without a Loss, Is Claim. (By The Associated Press.) Philadelphia, July 25.-Poor business, poor market conditions and a tremendous shrinkage in all securities recently, caused the failure of the Chandler Brothers & Co., bankers and brokers of this city and New York, Earl Mendenhall, head of the firm, said in a statement today. The company closed its doors today after Judge Patterson had appointed receivers on the request of Fred T. Chandler, Jr., who set forth in a bill of equity that owing to existing economic conditions it was found impossible to conduct the business without a loss. In an answer the other partners admitted this statement and joined in the application. Edwin J. Gilfillan, an engineer, and Cornelius Haggerty, Jr., an attorneys, were named as receivers. Mr. Mendenhall's statement said that his firm had more than one thousand accounts, but explained that losses by its clients would depend upon the condition of the stock market when the receivers begin to liquidate whatever securities are held. He could not estimate the firm's losses. It was estimated Mr. Chandler's bill of equity that the company's assets amount to about $50,000. It was announced there was no connection between the closed concern and Chandler Co., Inc.

4. July 27, 1921 The New York Herald New York, NY
Article from The New York Herald, July 27, 1921

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Article Text

ASK THAT BANKERS BE DECLARED BANKRUPT Creditors of Chandler Bros. Object to Penna. Receiver. PHILADELPHIA, July 26.-Three creditors of Chandler Brothers & Co., bankers and brokers of Philadelphia and New York, who closed their doors yesterday. formally applied to the United States District Court to-day to have the firm adjudged involuntary bankrupts. The creditors contended the appointment of a receiver by Common Pleas Court here would not affect the company's business affairs in cities outside of Pennsylvania. As the matter stands the receivers have no authority to liquidate the company's affairs outside of this State, whereas the firm maintained offices in a numbr of cities besides Philadelphia and New York. The application was requested by Robert D. Taylor, with claime of $1,398; F. Kimball Hager, $18.20. and Charles B. Downs, $1,680. The court set the hearing for tomorrow.

5. July 27, 1921 New-York Tribune New York, NY
Article from New-York Tribune, July 27, 1921

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Article Text

Involuntary Bankrupt Action Against Chandler PHILADELPHIA, July 26.-Three creditors of Chandler Brothers & Co., bankers and brokers of Philadelphia and New York, who closed their doors yesterdav, formally applied to the United States District Court to-day to have the firm adjudged involuntary bankrupts. The creditors contended the appointment of a receiver by Common Pleas Court here would not affect the company's business affairs in cities outside of Pennsylvania. As the matter now stands the receivers appointed by the local court have no authority to liquidate the company's affairs outside of this, whereas the firm maintained offices in a number of cities besides Philadelphia and New York. The application was requested by Robert D. Taylor, with claims of $1,398; F. Kimball Hager, with claims of $18.20, and Charles B. Downs, with claims of $1,680. Explaining the action, counsel for the petitioners issued the following statement: "Under the present action the rule of equity in Pennsylvania courts is the law which applies in winding up the affairs of Chandler Brothers & Co. "This company has branch offices in other states where the equity laws may be different from those in Pennsylvania, and where additional litigation might prove necessary if the Federal courts are not resorted to. Under the jurisdiction of the latter the bankruptcy act is uniformly operative." The court set to-morrow as the time for hearing the application.

6. July 30, 1921 Evening Public Ledger Philadelphia, PA
Article from Evening Public Ledger, July 30, 1921

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PENNSY'S FIRMNESS LOCAL FEATURE Calm Reception of IT eek's Adverse Events Proved Market Shock-Proof The week closed with dull but strong local market Pennsylvenia Railroad and Electric Storage Battery were the firm features. Continued good buying of Pennsylvania sent that stock to 371's the high price of the week Electric Storage Battery at the same time, made a new figure at 107 There were small dealings in Keystone Telephone Phila. delphia Electric Union Traction and West Jersey and Seashore without much change in price position While nothing much in particular was accomplished there was still a great deal of satisfaction to be derived from the conduct of the week's local market. It proved. in all events. to he entirely shock proof and besides. what is more important thoroughly liqui. dated. The regrettable suspension of the well-known banking and broker. age firm of Chandler Brothers & Co and Mayor Moore's veto of the gas ordinance in other times would have been a signal for a wholesale slaughter of security values Both events were more or less anticipated and conse. quently exerted little influence "III setting these adverse influences was the declaration of the Pennsylvania Rail. road quarterly dividend. giving the practical assurance of the maintaining of the t per cent dividend rate. more to action of the attached Much the significance was Pennsy to be directors than the mere fact of the dividend declaration It could he ac. cepted as it straw in the wind bearing upon the general situation partieu. larly as applying to the transportation problem. It was concrete evidence of satisfactory results had been b tained in gaining the upper hand of the heretofore ever-mounting operating cost. It was likewise an acceptable in dication of brighter things ahead. Because of its many outstretching arteries the Pennsylvania system virtually touches every basic industry from the New England coast to the Mississippi River. The future possibilities of this widely diversified traffic must surely have been convincingly promising. or not to else atism the would board by their have known decided conserv dip further into the convenient surplus. There was surely some improvement though it may not yet be perceptible to the inexperienced eye.

7. August 18, 1921 Evening Public Ledger Philadelphia, PA
Article from Evening Public Ledger, August 18, 1921

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Article Text

# HILL IS CHANDLER REFEREE Court Makes Appointment After Judgment of Bankruptcy Chandler Brothers & Co., bankers and brokers, were declared bankrupt yesterday by the United States District Court. John M. Hill was appointed referee for administration. This action followed an application made several days after the firm announced its inability to meet obligations. The firm failed to file an answer to the proceedings within the allotted fifteen days and automatically a declaration of bankruptcy was made. The next move in the new action will be for the referee to call a meeting of the creditors and elect trustees who will supersede the present receivers appointed by Common Pleas Court and United States District Court. The receivers, Edwin J. Gilfillan and Cornelius Haggarty, Jr., have been assembling the assets of the company since their appointment, and the appraisers appointed by the courts are still engaged checking up the nearly 1200 accounts. J. Howard Reber. of counsel for the receivers, said yesterday that some time will elapse before a statement of assets